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The Podrasky Corporation is considering a $ 1 7 5 million expansion ( capital expenditure ) program next year. The company currently has $ 4
The Podrasky Corporation is considering a $ million expansion capital expenditure program next year. The company currently has $ million in net fixed assets on its books. Next year, the company expects to earn $ million after interest and taxes. The company also expects to maintain its present level of dividends, which is $ million. If the expansion program is accepted, the company expects its inventory and accounts receivable each to increase by approximately $ million next year. Longterm debt retirement obligations total $ million for next year, and depreciation is expected to be $ million. The company does not expect to sell any fixed assets next year. The company maintains a cash balance of $ million, which is sufficient for its present operations. If the expansion is accepted, the company feels it should increase its yearend cash balance to $ million because of the increased level of activities. For planning purposes, assume no other cash flow changes for next year.
Calculate how much additional financing if any will be required if the company decides to go through with the expansion program. Enter your answer in millions. For example, an answer of $ million should be entered as not Round your answer to the nearest whole number.
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